Energean[/B] announced the discovery of a commercially exploitable natural gas field with the Athena exploratory well in the Sea of Israel, which it describes as particularly important, noting that the export of quantities to Cyprus is coming to the fore.
As it said in a statement, the commercially exploitable deposit was discovered in Block 12 in the Sea of Israel, with the first analysis pointing to 8 billion cubic metres (283 billion cubic feet). cubic meters[/B][/B]
It notes that the discovery is particularly significant as it eliminates the de-risk for an additional 50 billion cubic meters[/B] of recoverable gas. (1.8 trillion cubic metres). cubic feet / (321 million barrels of oil equivalent) of potential resources in total in the area that Energean has named the "Olympus Area". This is a new area identified by Energean that includes the Athena discovery as well as targets in Block 12 and the adjacent Tanin license that have not yet been drilled.
It adds that Athena can in the short term be developed through a tie-back to the Energean Power FPSO, enhancing the profitability of the Karish and Tanin development plan. Alternatively, it could form part of the wider Olympus Area development.
In addition, it notes that it is proceeding to evaluate all development prospects for the commercial exploitation of the wider "Olympus Area", including: Further gas sales to the Israeli market, i.e. new long-term Gas Sales & Purchase Agreements (GSPAs) based on the continued development of the Israeli power generation market and spot sales.
It also mentions that there are export opportunities, such as, Binding Trade Agreement based on the Memorandum of Understanding (MoU) signed with Egyptian Natural Gas Holding Company (EGAS) for the supply of up to 3 bn. cubic meters of natural gas per year and exports to other regional and European markets through pipelines and LNG via Cyprus and/or Egypt.
Mathios Rigas, CEO of Energean Group, said that "we are delighted to announce this new gas discovery in Athena and the potential of the wider "Olympus Area". We are looking at a range of strategic exploitation prospects for both stand-alone development of Athena and development of the wider 'Olympus Area', which include the domestic Israeli market and exports.
He added that the Athena discovery and the elimination of risk for a number of targets in the wider "Olympus Area" confirms the role of the Eastern Mediterranean as a centre of global interest in gas exploration. In addition, he said, it reinforces our commitment to bring competition and enhance security of gas supply to the region, enables the optimisation of our portfolio in Israel and realises one of Energean's 2022 milestones.
Note that the revenues from the gas produced from Block 12 are not subject to royalty payments to the companies from which Energean purchased the Karish and Tanin fields, therefore they will be increased by 8% for the same proportionate volumes of gas.
Athena drilling data
The Athena exploratory well (Athena) was drilled in Block 12 (Energean Israel, 100%), twenty kilometres from the Karish field and 20 kilometres from Tanin A, in a water depth of 1769 metres. The drilling had lasted 51 days and was executed at a lower cost than the projected budget of $35 million. The Athena well is Energean's 5th consecutive successful drilling in Israel.
As reported, a large 156-meter hydrocarbon column was identified in the primary drilling target ( A, B and C sands). Initial analysis indicates that the Athena discovery contains 8 billion cubic meters of oil. cubic meters (283 billion cubic feet or 51 million barrels of oil equivalent) of recoverable natural gas. Additional analyses will be conducted to determine the total potential and also confirm the quantities of liquid hydrocarbons in the discovery.
Commercially exploitable hydrocarbons were not identified in the deeper secondary target (D sands) which was characterized by a 22% chance of success.
Continuation of the drilling program
The Stena IceMAX drillship will be moved to complete the confirmation drilling Karish Main-04 and then complete development drilling at Karish North. A decision on whether Energean will proceed with both potential Hermes and/or Hercules wells included in the drilling programme will be made towards the end of the Karish Main-04 confirmation drilling, the statement concludes.
Source: CNA
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